Which of the Following Is a Correct Statement Regarding Probabilistic

question 45

Multiple Choice

Which of the following is a correct statement regarding probabilistic versus nonprobabilistic sample selection?

• A) Auditors may make nonstatistical evaluations when using probabilistic sample selection.
• B) The AICPA recommends probabilistic sample selection.
• C) Nonstatistical sampling can't provide results that are as effective as a statistical sample.
• D) There is only one type of nonprobabilistic sample selection method.

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Definitions:

Poison Pill Defense

A strategy used by companies to prevent or deter hostile takeovers by making the target company less attractive to the acquirer.

Greenmail Arrangement

A situation where a company buys back its own shares from a potential acquirer at a higher price to avoid a takeover attempt.

Pre-Offer Strategy

A plan devised prior to making an offer, typically in negotiation or bidding contexts, to maximize successful outcomes.

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.